Rents Corp. is considering a project that would require an initial investment of $200,000 for a machine. The projects incremental annual cash inflows are $135,000 and incremental cash outflows are $63,000. Annual depreciation on the machine is $17,000.

The payback period of the investment is closest to:

• 2.14

• 3.17

• 1.48

• 2.78